During the current year, Paul and Sandi, a married couple who use the cash method of accounting, purchased a principal residence for $350,000. View the additional information. Read the requirements. a. What is the total amount Paul and Sandi may deduct in the current year arising from the purchase and ownership of their home? Paul and Sandi may deduct a. What is the total amount Paul and Sandi may deduct in the current year arising from the purchase and ownership of their home? b. What is the treatment of the other items that are not deductible? Additional Information They paid $35,000 down and financed the remaining $315,000 of the purchase price with a 30 -year mortgage. At the closing, they also paid $375 for an appraisal, $450 for a title search, and 3.0 points representing additional interest over the term of the loan. At the end of the year, Paul and Sandi received a statement from the mortgage company indicating that $14,000 of their total monthly payments made during the year represents interest and $1,500 is a reduction of the principal balance